12-2621.Premium contributions, determination,
deposit and use; refunds.
(a) With respect to the categories of coverage described in subparagraphs
(d)(1) through (4) of K.S.A. 12-2618, and amendments thereto, premium
contributions to the pool shall be based upon appropriate manual
classification and rates, plus or minus applicable experience credits or
debits, and minus any advance discount approved by the trustees, not to exceed
25% of manual premium. The pool shall use rules, classifications and rates
as promulgated by an approved rating organization for workers compensation if
the pool has been in operation for less than five years.
Such rates shall be
the
prospective loss costs, as authorized in K.S.A.
40-955, and amendments thereto,
plus expenses necessary to administer the pool. For purposes of subsection
(b), the prospective loss costs shall be presumed to be the 70% required to be
deposited in the claims fund.
If the pool has been in operation for more than five years,
the board of trustees may determine such rates and discounts as approved by the
commissioner. Premium contributions to the pool for all other lines of
insurance shall be based on rates filed by a licensed rating organization or on
rates of certain companies filing rates with the commissioner and approved by
the commissioner for the pool. In lieu of the foregoing, the board of trustees
may determine such classification, rates and discounts as approved by the
commissioner.
Premium contributions to any pool providing life insurance or any pool
providing group sickness and accident insurance as described in K.S.A.
12-2617, and amendments thereto, shall be based on sound actuarial principles.
(b) An amount equal to at least 70% of the annual premium shall be
maintained in a designated depository for the purpose of paying claims in
a claims fund account.
If so approved by the commissioner of insurance, the annual premium to be
designated to such depository may be determined to be the net amount of premium
after all or a portion of the specific and aggregate excess insurance premium
costs have been paid. This shall be called the claims fund account.
If the pool has been in operation for more than five
years the commissioner may authorize allocation of a different amount to the
claims fund account, if solvency of the pool would not be endangered. The
remaining annual premium shall be placed into
a designated depository for the payment of taxes, fees and administrative
and other operational costs in an administrative fund account.
(c) Any moneys for a fund year in excess of the amount necessary
to fulfill all obligations of the pool for that fund year, including any
obligation to retain adequate surplus funds, as defined by subsection (h) of
K.S.A. 12-2618, and amendments thereto, in lieu of specific and
aggregate excess insurance, may be declared to be
refundable by the trustees not less than 12 months after the end of the fund
year. Any such refund shall be paid only to those members who remained
participants in the pool for an entire year. Payment of previously earned
refunds shall not be contingent on continued membership in the pool.
History: L. 1987, ch. 74, § 6; L. 1990, ch. 76, § 3;
L. 1991, ch. 60, § 2;
L. 1995, ch. 76, § 1;
L. 1997, ch. 125, § 1;
L. 1999, ch. 95, § 3;
L. 2002, ch. 86, § 1; July 1.
12-2621.Premium contributions, determination,
deposit and use; refunds.
(a) With respect to the categories of coverage described in subparagraphs
(d)(1) through (4) of K.S.A. 12-2618, and amendments thereto, premium
contributions to the pool shall be based upon appropriate manual
classification and rates, plus or minus applicable experience credits or
debits, and minus any advance discount approved by the trustees, not to exceed
25% of manual premium. The pool shall use rules, classifications and rates
as promulgated by an approved rating organization for workers compensation if
the pool has been in operation for less than five years.
Such rates shall be
the
prospective loss costs, as authorized in K.S.A.
40-955, and amendments thereto,
plus expenses necessary to administer the pool. For purposes of subsection
(b), the prospective loss costs shall be presumed to be the 70% required to be
deposited in the claims fund.
If the pool has been in operation for more than five years,
the board of trustees may determine such rates and discounts as approved by the
commissioner. Premium contributions to the pool for all other lines of
insurance shall be based on rates filed by a licensed rating organization or on
rates of certain companies filing rates with the commissioner and approved by
the commissioner for the pool. In lieu of the foregoing, the board of trustees
may determine such classification, rates and discounts as approved by the
commissioner.
Premium contributions to any pool providing life insurance or any pool
providing group sickness and accident insurance as described in K.S.A.
12-2617, and amendments thereto, shall be based on sound actuarial principles.
(b) An amount equal to at least 70% of the annual premium shall be
maintained in a designated depository for the purpose of paying claims in
a claims fund account.
If so approved by the commissioner of insurance, the annual premium to be
designated to such depository may be determined to be the net amount of premium
after all or a portion of the specific and aggregate excess insurance premium
costs have been paid. This shall be called the claims fund account.
If the pool has been in operation for more than five
years the commissioner may authorize allocation of a different amount to the
claims fund account, if solvency of the pool would not be endangered. The
remaining annual premium shall be placed into
a designated depository for the payment of taxes, fees and administrative
and other operational costs in an administrative fund account.
(c) Any moneys for a fund year in excess of the amount necessary
to fulfill all obligations of the pool for that fund year, including any
obligation to retain adequate surplus funds, as defined by subsection (h) of
K.S.A. 12-2618, and amendments thereto, in lieu of specific and
aggregate excess insurance, may be declared to be
refundable by the trustees not less than 12 months after the end of the fund
year. Any such refund shall be paid only to those members who remained
participants in the pool for an entire year. Payment of previously earned
refunds shall not be contingent on continued membership in the pool.
History: L. 1987, ch. 74, § 6; L. 1990, ch. 76, § 3;
L. 1991, ch. 60, § 2;
L. 1995, ch. 76, § 1;
L. 1997, ch. 125, § 1;
L. 1999, ch. 95, § 3;
L. 2002, ch. 86, § 1; July 1.
12-2621.Premium contributions, determination,
deposit and use; refunds.
(a) With respect to the categories of coverage described in subparagraphs
(d)(1) through (4) of K.S.A. 12-2618, and amendments thereto, premium
contributions to the pool shall be based upon appropriate manual
classification and rates, plus or minus applicable experience credits or
debits, and minus any advance discount approved by the trustees, not to exceed
25% of manual premium. The pool shall use rules, classifications and rates
as promulgated by an approved rating organization for workers compensation if
the pool has been in operation for less than five years.
Such rates shall be
the
prospective loss costs, as authorized in K.S.A.
40-955, and amendments thereto,
plus expenses necessary to administer the pool. For purposes of subsection
(b), the prospective loss costs shall be presumed to be the 70% required to be
deposited in the claims fund.
If the pool has been in operation for more than five years,
the board of trustees may determine such rates and discounts as approved by the
commissioner. Premium contributions to the pool for all other lines of
insurance shall be based on rates filed by a licensed rating organization or on
rates of certain companies filing rates with the commissioner and approved by
the commissioner for the pool. In lieu of the foregoing, the board of trustees
may determine such classification, rates and discounts as approved by the
commissioner.
Premium contributions to any pool providing life insurance or any pool
providing group sickness and accident insurance as described in K.S.A.
12-2617, and amendments thereto, shall be based on sound actuarial principles.
(b) An amount equal to at least 70% of the annual premium shall be
maintained in a designated depository for the purpose of paying claims in
a claims fund account.
If so approved by the commissioner of insurance, the annual premium to be
designated to such depository may be determined to be the net amount of premium
after all or a portion of the specific and aggregate excess insurance premium
costs have been paid. This shall be called the claims fund account.
If the pool has been in operation for more than five
years the commissioner may authorize allocation of a different amount to the
claims fund account, if solvency of the pool would not be endangered. The
remaining annual premium shall be placed into
a designated depository for the payment of taxes, fees and administrative
and other operational costs in an administrative fund account.
(c) Any moneys for a fund year in excess of the amount necessary
to fulfill all obligations of the pool for that fund year, including any
obligation to retain adequate surplus funds, as defined by subsection (h) of
K.S.A. 12-2618, and amendments thereto, in lieu of specific and
aggregate excess insurance, may be declared to be
refundable by the trustees not less than 12 months after the end of the fund
year. Any such refund shall be paid only to those members who remained
participants in the pool for an entire year. Payment of previously earned
refunds shall not be contingent on continued membership in the pool.
History: L. 1987, ch. 74, § 6; L. 1990, ch. 76, § 3;
L. 1991, ch. 60, § 2;
L. 1995, ch. 76, § 1;
L. 1997, ch. 125, § 1;
L. 1999, ch. 95, § 3;
L. 2002, ch. 86, § 1; July 1.